Why It’s A New Dawn for Japan’s Central Bank

4/5/2013 3:45AM

Japanese stocks are soaring after the Bank of Japan announced bold measures to beat deflation. Paul Krake of View From the Peak tells the WSJ’s Mariko Sanchanta why this is a good time for Japanese companies to make acquisitions abroad.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... a senior doctor the Bank of Japan which yesterday and an old ... aggressive easing measures that completely for the market ... with me to discuss that today is called crate founder of View from the peak ... of consultancy based in Hong Kong ... fall even as Japan watcher for many years now and even you were shocked by what happened yesterday ... was this mean for foreign investors who are already investing in Japan during do you think the Nikkei is going to go up even more I think this is one of most radical whose bicycle banking history says banking ... on its ... not any but the other characters from the central bank's settling on a carriage of the Bank of Japan ... and what you see now is a clear determination to break the The saw of deflation ... aam what does that mean to Japanese s it's full of names that it's two fold one ... that peacefully to possible straw Korean weakness of the course the next two years also unlike indies on our airwaves ... dollar yen ... dips to construe the ... the two thousand and ninety nine nights ... a wise one forty five ... aam I think that means that Japanese equities completely rewrite ... of the then leading stands all ... gain returns but also a dollar returns to ... the gains in equities will outstrip losses of ... the current state ... aam and I can see it's an ARIA we Nikkei trades to twenty thousand some sites of course the next twelve months ... in Japan is back again I mean we've heard a lot about Abenomics we've heard ... in the yen has weakened twenty percent since he's been prime minister ... it does seem like Japan is back in no way in but when you think having been through the ups and downs and a half skeptical and the reason the recently skeptical ease ... aam ... wall beating deflation is important ... it's not bailing until ... Sunday over the Will Bank said I will Bank has said that amazing piece of doing business ... and Japan ranks uh hundred and fourteen globally in terms of stopping a new company ... that's one spot behind Tanzania in one spot ahead lead ... aam it up some business in Japan so the old peril spirit there are pockets of that ... bought for Japan to truly ... get out of its fiscal situation and its tenants current debt net debt to GDP of the hundred forty percent ... aam you to raise the train ride of growth and wall among tree stimulus of this style will help ... you gotta get trend growth from the current one the one the hospice and ... hopes ... to three and four three in above many right you really do that is by ... developing new industries in Japan and make it easy to stop businesses ... and easing the immigration laws their share of structural barriers in Japan while the winner well this dish it out of them to the rodeo at the end because the walls and the guides and on the tax that ... makes very good points which holds about ... your immigration and demographics thing real struggle palms and Japan is actually ... a whole lot of really interesting thing you mention to me is that this will make companies more willing to go abroad and spent ... absolutely because if you if you're if you're welcome police to your current C is gonna go down by ... another thirty percent with civilian goes to one thirty in the course the next ... twelve to ... nine months ... aam ... with the market to buy company and that and that happening in US dollars we've got a thirty percent had supper ready ... sorry you look at what Softbank did we find strange ... ALM that that read for twenty five cents Newmont in the money and I haven't begun placing type site of the management company said ... so it's it's it's a real incentive to ... pull for Nana night the Japanese companies to use their enormous cash balances and to some of your foreign acquisition ... fascinating we will keep on